12/21/24
November 21, 2014
Blind-sided: Blue Jackets’ Jack Johnson is bankrupt; who led him there is biggest shocker: On the morning of Oct. 7, two days before the Blue Jackets opened the 2014-15 season, Jack Johnson left his Ferrari parked in the garage of his Dublin apartment and drove his BMW to a federal courthouse Downtown to file for bankruptcy.
I think it's also deserving of a main post.
It's amazing that large sums of money can so drastically change how family members see each other.
posted by grum@work at 02:05 PM on November 21, 2014
It's equally amazing how trusted family members can spend millions of dollars as if it's their own money without a care in the world.
posted by BornIcon at 02:43 PM on November 21, 2014
Millions of future dollars!
posted by bender at 04:08 PM on November 21, 2014
I don't know if I'm more angered at the parents for doing it or for being so stupid: "Tina Johnson borrowed at least $15 million in her son's name against his future earnings, sources told The Dispatch, taking out a series of high-interest loans perhaps as many as 18 from nonconventional lenders that resulted in a series of defaults."
You have power of attorney on a seven-year annuity that will pay out $30.5 million dollars. There are approximately 1 zillion white-shoe firms that will arrange for a low-interest loan against that or pay you something close to the present value of the annuity. You don't need a goddamn loan at all. Assuming a US real interest rate of 2% and the contract is paid in seven installments of US$4.35 million, if you signed it today that's a present value of $28 million. Someone will gladly give you $25 million or more today. In your hand. And all legal like without any lowered voices, broken knees or having to duck down an alley.
It's criminally stupid the teams and players' unions don't do more to educate players about finances. And it would probably help if half the agents were defrocked. This is a great example of why kids with bad parents should seek out a significant other who hates their parents.
posted by yerfatma at 04:16 PM on November 21, 2014
The story goes about the father who taught his son about business. He took the son to the warehouse, got a tall stepladder, and told the son to climb up to a high shelf to get an item. The son did so, but could not reach the item while he was still on the ladder.
"Crawl from the ladder to the back of the shelf", said the father. The son did so, but as soon as he was off the ladder, the father took it away from the shelf. "Jump! I will catch you", said the father. "It's a long way down, and I'll be hurt", said the son. "Just trust me" said dad.
The son jumped, the father moved to one side, and the son crashed to the floor, badly hurt. "Dad, why did you let me fall?"
"That was your first lesson. In business you trust nobody, not even your own family".
I believe teams and even leagues in other sports are giving some sort of education about finances, among other things. I wonder why the NHL has not done this yet.
posted by Howard_T at 05:17 PM on November 21, 2014
From the article:
Blum's office did not respond to interview requests left with Blum's spokesman by The Dispatch. It's unclear how Johnson's family came to know him or why he was making a personal loan at a high interest rate.
One day after the home loan was signed, on March 10, 2011, the Johnsons borrowed $2 million at an interest rate of 12 percent from a software developer in Iowa named Rodney L. Blum, who this month won a seat in the U.S. House.
What the eff? Why? I just don't get why you would get a high-interest loan from some shmoe on the street. And of course this shmoe is now a House Rep.
posted by NoMich at 05:51 PM on November 21, 2014
About Rod. "One of the things that has separated our great country from the rest of the world is our citizens have always had hope and belief for a better tomorrow". Yup, that's the rest of the world, just hoping for things to get shittier. "What do they know of England who only England know?"
The only bright spot in this story would appear to be some great reporting done by The Dispatch.
posted by yerfatma at 07:24 PM on November 21, 2014
Sorry, haven't had a chance to log on in a few days but just saw that NoMich posted this on Thursdays Huddle.